LONDON (AFP) – Leading shares in London closed lower on Thursday on signs that more Americans are starting to claim unemployment benefits, spelling bad news for the economic recovery.
The benchmark FTSE 100 index ended down 0.38 percent at 5,365.78 points.
Initial benefit claims in the US climbed 4.1 percent to 479,000 in the week to July 31, the Labor Department said, baffling most analysts who had expected claims to fall to 455,000.
Lloyds Banking Group (LBG) was the most traded stock, seeing 262 million shares switch owners, followed by Royal Bank of Scotland (RBS), which saw 134 million units change hands.
Aviva was the top blue-chip performer, adding 7.18 percent -- or 26.4 pence -- to end at 394.3, followed by fellow insurer RSA Insurance, which rose 3.89 percent -- or 5 pence -- to end at 133.5.
Aerospace group Cobham was the biggest faller, shedding 6.67 percent -- or 16 pence -- to end at 224, followed by gold miner Randgold Resources which struggled after Wednesday's gains to close down 5.6 percent -- or 320 pence -- at 5,395.
Meanwhile, the pound slipped again against the dollar while it was practically flat against the euro.
At 17:20 BST, sterling was trading at 1.586 dollars, down from 1.589 dollars at the same time on Wednesday, while the UK currency stood at 1.206 euros, just down from 1.207 over the same period.